Jobstore raised only $100K of an $8m IPO push into AI – but it’s not giving up yet
High-tech recruitment platform Jobstore raised less than 2 per cent of the $8 million it was seeking in an initial public offering — but it’s not giving up.
The “Artificial Intelligence powered online recruitment platform” issued a prospectus two months ago to raise $6.6 million to $8 million at 20c a share.
Malaysia-based Jobstore aims to automate hiring for corporate customers using high-tech algorithms that advertise jobs on 50 different employment sites — automatically recommending the best candidates.
The offer opened September 19 and was due to close November 13 — before listing on the ASX next month.
But Jobstore received only $102,388 in that time from 21 applicants, according to a supplementary prospectus lodged today.
Just in case investors forgot to send in their applications, Jobstore has now extended the offer for another two months to January 11.
Under the new timetable, Jobstore hopes to begin trading on the ASX from January 28.
AI on the ASX
Jobstore hopes to join half a dozen other similar AI-based companies on the ASX including Nvoi (ASX:NVO) and HiTech (ASX:HIT).
The IPO will see it valued at up to $34.1 million.
The cash is being used to expand in Australia as well as open the door to capital markets.
At the end of June, Jobstore had $102,200 left in the kitty according to its prospectus. It made $2.1 million in fiscal 2018 but a loss of $868,877 after expenses surged.
Jobstore “aims to be one of the top human capital management service providers” in Malaysia, Singapore and Australia.
“Malaysia has recently had a change of government, which may give rise to changes in government regulation and policy affecting Jobstore Malaysia,” the prospectus says under its “risks” section.
“This risk cannot be controlled by the company or the directors.
“There is no assurance that any change that occurs as a result of political, economic or social reforms in Malaysia will have a positive effect on Malaysia’s economic development or that the Group’s operating companies will benefit from or will be able to capitalise on these reforms.”
The company is chaired by Alan Beasley, the founding chairman of pot stock The Hydroponics Company (ASX:THC) who lost a battle for his seat in October last year.
CEO and managing director Anping Wang founded the company in 2014, after launching other recruitment sites in South-East Asia, one of which was sold to Monster.com.